Steve Cohen Gabe Plotkin Dumb Money

Steve Cohen and Gabe Plotkin's investment firm, Point72, is often referred to as "Dumb Money" due to its unconventional approach to investing.

Their strategy involves taking large positions in companies, often with a significant amount of debt, and then selling the stock quickly, which can be a high-risk but potentially high-reward approach.

This approach is a departure from traditional value investing, which focuses on buying undervalued companies and holding them for the long term.

The "Dumb Money" label is a nod to the idea that their strategy is not necessarily based on traditional investment principles.

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"Dumb Money" is a film that lampoons Wall Street titans with a knowing eye. It tells the story of the stock market frenzy over GameStop, a video game retailer, during the pandemic.

The film was financed and produced by Teddy Schwarzman, whose father, Stephen A. Schwarzman, is a Wall Street superpower and CEO of Blackstone. Blackstone has over $1 trillion under management.

The movie contains withering depictions of real-life Wall Street figures like Kenneth C. Griffin, the Citadel titan, and Steven A. Cohen, the hedge fund manager and New York Mets owner.

For another approach, see: Blackstone Equity Company

Gabe Plotkin is a high-earning hedge fund manager. He led the fund and earned about $300 million in compensation in 2017, making him the 20th-highest-paid hedge fund manager that year.

Plotkin is known for his luxurious purchases, including two adjacent houses in Florida he bought for $44 million in December 2020. He's also a sports investor, having purchased a minority interest in the Charlotte Hornets in 2019 from Michael Jordan.

In 2020, Plotkin's compensation skyrocketed to over $800 million, according to Bloomberg. However, his fortune took a hit in January 2021, when he reportedly lost $460 million due to short squeezes.

If this caught your attention, see: Gabe Plotkin Net Worth